Sunday, 17 August 2014

DISTRIBUTION

Distribution Channels

Product distribution (or place) is one of the four elements of the marketing mix. According to AMA distribution in The marketing and carrying of products to consumers,
The various channels of distribution can be : 


Cadbury's distribution channels include the manufacturing warehouses where the chocolate production takes place. This is followed by wholesale and then retailer. From retailer the product is sold to the consumer.

Channel Design Decision :

Following are the points marketers keep in mind while designing a distribution channel :

  • Analyzing customer wants
  • Establishing objectives and constrains
  • Identifying major channel alternatives
  • Evaluation major channel alternatives
Retailers are the most important part of distribution channel as they are the direct link to the consumers.
5 star has a huge retailer base because it is easily available at stores ranging from local corner shops to malls to online shopping sites.
Various types of retailers are

  • Store Retailers
  • Non Store Retailers
  • Franchising
Cadbury's distribution network encompasses 2100 distributors and 450,000 retailers with consumer base of over 65 million.and reaches 0.6 million retail outlets.
The distribution of 5 star is broken down as follows.

Company >> C&F agent >> Distributors >> Retailers >> Consumers


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